Tag Archives: oil refineries

Texas oil refineries shut as winter storm hits U.S. energy sector

By Arpan Varghese

(Reuters) – Freezing temperatures across Texas during the extended holiday weekend forced energy companies to shut oil refineries in the largest U.S. crude-producing state and restricted natural gas pipeline operations.

The rare deep freeze prompted the state’s electric grid operator to impose rotating blackouts, leaving nearly 3 million customers without power.

President Joe Biden declared an emergency on Monday, unlocking federal assistance to Texas.

Texas produces roughly 4.6 million barrels of oil a day and is home to some of the nation’s largest refineries, spread throughout the Gulf Coast. In Midland, heart of the U.S. Permian shale region, temperatures were in the single digits Fahrenheit.

Motiva Enterprises said it was shutting down its Port Arthur, Texas, complex, which includes its 607,000 barrel-per-day refinery – the largest in the United States.

Exxon also began shutting its 369,024 bpd Beaumont refinery and its 560,500 bpd Baytown refinery and adjoining chemical plant in Texas, sources familiar with plant operations said.

Its Baton Rouge facility in Louisiana experienced operational issues.

Citgo Petroleum Corp said some units at its 167,500 bpd Corpus Christi, Texas, refinery were being shut.

Sources familiar with plant operations said earlier that the crude distillation unit, a reformer and a hydrotreater were shut by cold weather at the refinery, with all other units also being powered down.

The cold snap also forced Lyondell Basell’s 263,776 bpd Houston refinery to operate at minimum production and shut most units at Marathon’s 585,000 bpd Galveston Bay plant.

“We are also getting reports of power outages across the Permian, which are expected to continue over the weekend if the current weather system persists. This may result in intermittent production shut-ins, with a moderate impact on Permian oil production expected in February,” Rystad Energy’s head of oil markets, Bjornar Tonhaugen, said in a note.

Energy distribution was stalled across large parts of the United States.

Kinder Morgan’s Natural Gas Pipeline Co. reported capacity constraints at various locations on its pipeline system, while Enable Gas Transmission said it was taking measures to ensure adequate supply for customers.

Oil pipeline operator Enbridge Inc. said on Monday a 585,000 bpd crude oil pipeline that runs from its terminal near Pontiac, Illinois, outside of Chicago, to the largest U.S. oil storage hub in Cushing, Oklahoma, was halted because of power outages.

“Crews are working with electric utility providers to restore power to Line 59,” as the pipeline is called, said Enbridge spokesman Michael Barnes. “The power failure is due to the winter storm the U.S. is experiencing.”

Colonial Pipeline Co, the largest oil products pipeline in the United States, said there were no significant impacts to operations at the moment due to the weather.

The icy weather conditions also prompted Port Houston public terminals to cease vessel operations from Sunday evening through Monday.

(Reporting by Arpan Varghese and Eileen Soreng in Bengaluru; Additional reporting by Gary McWilliams and Erwin Seba in Houston; Editing by Andrea Ricci, Dan Grebler and Sonya Hepinstall)

Oil markets flat as restarts begin at storm-hit energy operations

By Erwin Seba

HOUSTON (Reuters) – Energy companies on Friday continued efforts to restore operations at U.S. Gulf Coast offshore platforms and refineries shut by Hurricane Laura as oil markets largely shrugged off the storm’s impact.

Some 300 offshore production facilities and half-dozen refineries halted ahead of a Category 4 storm that hit the coast of Louisiana early Thursday with winds of 150 mile per hour (240 kph). The destructive winds cut a narrow path through the area, sparing facilities not directly in its path.

However, Citgo Petroleum’s 418,000-barrel per day Lake Charles, Louisiana, plant was on the storm’s path, and repairs could take four to six weeks, according to Mizuho Securities. The company did not reply to requests for comment.

Motiva Enterprises, operator of the largest U.S. refinery, and Valero Energy Corp on Friday began restarting their Port Arthur, Texas, refineries.

U.S. crude futures traded at $43.08 per barrel at midday, up four cents, up slightly from $42.34 a week ago. U.S. gasoline futures were up 2 cents, less than 2% higher than they were a week ago.

About 84%, or 1.56 million barrels per day, of U.S. Gulf of Mexico crude output and 60% of natural gas offshore production were shut on Thursday, the U.S. Department of Interior reported.

Exxon Mobil Corp said its 369,024 bpd Beaumont, Texas, refinery, about 50 miles (80 km) west of the storm’s landfall, required “minor repairs,” a spokesman said. The company was taking steps to restart once power and port operations were restored.

Cheniere Energy Inc’s and Cameron LNG’s Cameron liquefied natural gas plants in Louisiana took almost no pipeline gas early on Friday, according to preliminary data from Refinitiv.

“Refiners may be reluctant to quickly return to production when the product they make is a money losing proposition,” Robert Yawger, director of energy futures at Mizuho Securities, wrote on Friday.

The ports of Beaumont, Orange and Sabine, Texas, and Cameron and Lake Charles, Louisiana, remained closed on Friday, according to the U.S. Coast Guard.

Houston, the United States’ largest energy export port, restarted operations on Thursday and had nearly halved the list of 53 vessels waiting on Thursday to reenter the port.

One-way movement and other restrictions were in place on Friday at points along the Houston Ship Channel, according to the U.S. Coast Guard.

(Reporting by Erwin Seba; writing by Gary McWilliams; Editing by Marguerita Choy and David Gregorio)

US Coast Guard, EPA cleaning up a dozen Texas chemical spills after Harvey

Vehicles sit amid leaked fuel mixed in with flood waters caused by Tropical Storm Harvey in the parking lot of Motiva Enterprises LLC in Port Arthur, Texas, U.S. August 31, 2017.

By Emily Flitter

HOUSTON (Reuters) – The U.S. Coast Guard and the Environmental Protection Agency are working with Texas state regulators to clean up oil and chemicals spilled from a dozen industrial facilities after flooding from Hurricane Harvey, authorities said.

The spills came from oil refineries, fuel terminals and other businesses, but EPA spokeswoman Terri White said it was not possible to provide an estimate for the amounts spilled.

“Initial reports were based on observation,” White said. “Some spills were already being cleaned up by the time EPA or other officials arrived to assess them and others had already migrated offsite.”

Refineries owned by Valero Energy Corp in Houston, Motiva Inc in Port Arthur, and Exxon Mobile Corp in Baytown, were among the facilities that had reported spills, according to White. Representatives for those companies did not immediately respond to requests for comment.

Officials also reported spills at Kinder Morgan Inc’s Pasadena fuel storage terminal and at an oil terminal in Texas City owned by NuStar Energy LP.

Kinder Morgan spokeswoman Lexey Long said on Monday the company reported a spill of 500 barrels of gasoline on Aug. 27. Workers covered the spill with a foam blanket and set up a barrier to keep the public away.

“The spill has been fully remediated,” she said.

NuStar representatives had no immediate comment.

Two wastewater treatment plants – Integrity Golden Triangle Marine Services of Port Arthur and San Jacinto River and Rail in Beaumont – also appeared on the list of spill response locations that EPA provided to Reuters.

San Jacinto River and Rail said it spilled a “foamy emulsion” when floodwaters overtopped the berms around its facility.

“Some is on our property and some is on adjacent property which has already been cleaned up,” said spokesman Dennis Winkler. “We do not expect a long-term environmental impact. We do not expect there will be any air impact or health impacts.”

Representatives from Integrity Golden Triangle did not immediately respond to requests for comment.

The liquid spills come in addition to more than a million pounds of toxic emissions above legal limits that spewed from industrial facilities following Harvey, according to reports from companies filed with the Texas Commission for Environmental Quality.

The EPA and other authorities had warned people affected by the flood that waters could contain bacteria and toxic chemicals, but have said little yet about the specific origins or quantities of substances.

Residents in Baytown, where houses sit along the Houston Ship Channel next to several major refineries and chemical plants, said they were concerned about the impact of the spills and releases on health.

“I’m against the sword and the wall, what can I do?” said Carlos Caban, one of the residents, whose son had taken pictures of contaminated-looking floodwaters in nearby refinery site.

Several residents reported seeing a metallic sheen on water flowing near the plants during the heaviest flooding, posting videos to YouTube.

 

(Reporting By Emily Flitter; editing by Richard Valdmanis and Jonathan Oatis)

 

Oil markets roiled as Harvey hits U.S. petroleum industry

An oil tank damaged by Hurricane Harvey is seen near Seadrift, Texas, August 26, 2017

By Ahmad Ghaddar

LONDON (Reuters) – Oil markets were roiled on Monday after Tropical Storm Harvey wreaked havoc along the U.S. Gulf Coast over the weekend, crippling Houston and its port, and knocking out several refineries as well as some crude production.

U.S. gasoline prices hit two-year highs as massive floods caused by the storm forced refineries in the area to close. In turn, U.S. crude futures fell as the refinery shutdowns could reduce demand for American crude.

Brent futures steadied as pipeline blockades in Libya slashed the OPEC state’s output by nearly 400,000 barrels per day .

Harvey is the most powerful hurricane to hit Texas in more than 50 years, killing at least two people, causing large-scale flooding, and forcing the closure of Houston port as well as several refineries.

The U.S. National Hurricane Center said Harvey was moving away from the coast but was expected to linger close to the shore through Tuesday. It said floods would spread from Texas eastward to Louisiana.

Texas is home to 5.6 million bpd of refining capacity, and Louisiana has 3.3 million bpd. Over 2 million bpd of refining capacity was estimated to be offline as a result of the storm.

Spot prices for U.S. gasoline futures surged 7 percent to a peak of $1.7799 per gallon, the highest level since late July 2015, before easing to $1.7341 by 1341 GMT.

U.S. traders were seeking oil product cargoes from North Asia, several refining and shipping sources told Reuters, with transatlantic exports of motor fuel out of Europe expected to surge.

“Global refining margins are going to stay very strong,” said Olivier Jakob, managing director of Petromatrix.

“If (U.S.) refineries shut down for more than a week, Asia will need to run at a higher level, because there’s no spare capacity in Europe.”

About 22 percent, or 379,000 bpd, of Gulf production was idled due to the storm as of Sunday afternoon, the U.S. Bureau of Safety and Environmental Enforcement said.

There might also be around 300,000 bpd of onshore U.S. production shut in, trading sources said.

Brent crude futures were up 2 cents at $52.43 per barrel. U.S. West Texas Intermediate  crude futures  were down 50 cents at $47.37.

The price moves pushed the WTI discount versus Brent to as much as $5.24 per barrel, the widest in two years.

 

 

(Additional reporting by Henning Gloystein in Singapore; Editing by Dale Hudson and Edmund Blair)